Singapore Treasury bills (T-bills)

[dappermen]

I think this would be a biggest disadvantage of T-bill vs FD and SSB then. Ppl need to be aware really cannot see the $ for the next 6/12 mths

But isnt FDs of 15-18mths and beyond even longer?

i hope u r not comparing it w savings in usu bank accounts???


do u keep more of your pf % in ssb or more in tbills /sgs bonds?

Many people are buying both.
And some people like me are buying tbills using money that we previously keep in FD or savings account.

 

[chopra]

quite mafan leh.

sian. looks like i need to b the first mover le cos i have a mid 6digit oa balance. 0.5% is quite a big sum. maybe i go open cpfis tmr…


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[reddevil0728]

sian. looks like i need to b the first mover le. i go open cpfis tmr…


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the yield needs to be high enough to account for the CPF fees and the transition in months cause of the lowest monthly balance thing.

but when u set cut-off yield too high. what if somehow the yield drops? end up u lose interest from CPF for multiple months.

+ the need to do it in branch....

a lot of -ves

 

[fr33d0m]

i dont think it will be too priced in. there should instead be some form of formulae that big brothers use to calculate the expected yield for 6mth tbill based on fed real rate.



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the formula is very simple. the rate from now in the next 6 month is 2.25 - 3.5%. It is almost certain. just add all the interest earned and you get the yield.

 

[chopra]

the yield needs to be high enough to account for the CPF fees and the transition in months cause of the lowest monthly balance thing.
but when u set cut-off yield too high. what if somehow the yield drops? end up u lose interest from CPF for multiple months.
+ the need to do it in branch....
a lot of -ves

i do some aggaration to ensure im better off.

assuming i lose 2 months of cpf oa interest, thats about 0.4%. if tbill is 2.9% and higher, it might be worth doing. doing in branch is ok. dbs allows us to sms in to chope a queue

i also wont do competitive. just whack. i think I read before that from tbill to tbill, delta cannot fluctuate beyond 0.5%



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[reddevil0728]

i do some aggaration to ensure im better off.

assuming i lose 2 months of cpf oa interest, thats about 0.4%. if tbill is 2.9% and higher, it might be worth doing. doing in branch is ok. dbs allows us to sms in to chope a queue



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what about accounting for opp cost if end up never get the allocation cause bid too high? did you account for for that?

 

[chopra]

i will do non competitive. maybe i wait another 2 more tbill windows. see whether it trends upwards first


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[reddevil0728]

i will do non competitive. maybe i wait another 2 more tbill windows. see whether it trends upwards first


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Hmm later not high enough end up opp cost

 

[Intel888]

anything can happen from now till then. so thought doing a ladder might be better. smooth our your yield. less guessing

That's true. Something like 'dollar-cost averaging' - buy when high, buy when low.

Also need to consider where to 'hold' the funds as the ladder is built.
There will be some 'loss' since funds that can be deployed immediately are earning peanuts elsewhere.
Don't see good alternatives that can make funds available at short notice of a few weeks/ months, other than SSB.

 

[reddevil0728]

That's true. Something like 'dollar-cost averaging' - buy when high, buy when low.

Yep

Also need to consider where to 'hold' the funds as the ladder is built.
There will be some 'loss' since funds that can be deployed immediately are earning peanuts elsewhere.
Don't see good alternatives that can make funds available at short notice of a few weeks/ months, other than SSB.

There are just some stuff that you can optimise. So it’s just about accepting what’s “high enough”

 

[chopra]

the formula is very simple. the rate from now in the next 6 month is 2.25 - 3.5%. It is almost certain. just add all the interest earned and you get the yield.

i must admit i dont understand haha


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[Intel888]

the formula is very simple. the rate from now in the next 6 month is 2.25 - 3.5%. It is almost certain. just add all the interest earned and you get the yield.

How did you arrive at this conclusion?
I'm interested to understand.

 

[dappermen]

the formula is very simple. the rate from now in the next 6 month is 2.25 - 3.5%. It is almost certain. just add all the interest earned and you get the yield.

wow, tks! but the range is quite a wide one!! anything lesser than 2.8% is out for me
OA is alrdy 2.5% SA more...... though not all will use cpf to invest


for the next round of bond : ref
https://forums.hardwarezone.com.sg/...-bills-t-bills.6769601/page-62#post-143105133https://forums.hardwarezone.com.sg/...-bills-t-bills.6769601/page-62#post-143106690

 

[vsvs24]

sian. looks like i need to b the first mover le cos i have a mid 6digit oa balance. 0.5% is quite a big sum. maybe i go open cpfis tmr…


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Check out the charges first.

If really want to open, open with UOB. There was posts recently comparing the charges for CPFIS for the 3 banks. DBS even charge for interest received.

https://forums.hardwarezone.com.sg/threads/singapore-sgs-bond.6773131/post-142944594
https://forums.hardwarezone.com.sg/threads/singapore-sgs-bond.6773131/post-142944707

 

[chopra]

Check out the charges first.
If really want to open, open with UOB. There was posts recently comparing the charges for CPFIS for the 3 banks. DBS even charge for interest received.

Singapore SGS Bond
and because i intend to reinvest the coupons back to CPF via VC3A every 6 months it should narrow the difference between remaining and compounding in OA vs buying this 10 year bond ? thanks again. Yep

forums.hardwarezone.com.sg

Singapore SGS Bond
and because i intend to reinvest the coupons back to CPF via VC3A every 6 months it should narrow the difference between remaining and compounding in OA vs buying this 10 year bond ? thanks again. Yep

forums.hardwarezone.com.sg

wow such disparate treatments. sigh



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[reddevil0728]

wow such disparate treatments. sigh



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it's more like "differing product" right.

 

[dappermen]

Luv UOB alwys!!!!!!!!!!!!! been using since day1



https://www.uob.com.sg/web-resource...cial/cpf-investment-account/CPFIS-charges.pdf

wow such disparate treatments. sigh

Syfe said UOB charges when i refund USD into my sgd bank account, but if it s DBS? no such charges!!!!!!! so unfair!!!!!!!!!!!!!
nevertheless still like UOB

 

[shau61]

Received from DBS as follows:

Nominal Account: $25,000
Settlement Amount: $24,227

I thought I should get back $25,000 when my T-bill matured in 6 month time. Should I clarify with CDP or DBS? Thanks

 

[Perisher]

sian. looks like i need to b the first mover le cos i have a mid 6digit oa balance. 0.5% is quite a big sum. maybe i go open cpfis tmr…


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Interested to know the process, so update if you can. Thanks.

 

[lzydata]

Received from DBS as follows:

Nominal Account: $25,000
Settlement Amount: $24,227

I thought I should get back $25,000 when my T-bill matured in 6 month time. Should I clarify with CDP or DBS? Thanks

That looks strange. This is the latest T-bill? Did you actually receive refunds of $25000 - $24227 = $773?

Better clarify with DBS first if it is their message.